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FINANCIAL NEWS
Oman eyes to boost gas output to meet demand
13 Dec 2011
(MENAFN) A senior official at Oman’s Ministry of Oil and Gas said that the sultanate will accept oil and natural gas block bids at five onshore areas during the first quarter of 2012, Bloomberg reported.
Khalifa bin Mubarak Al-Hinai, adviser of the ministry expected to announce the awards two months after the bidding.
He said that the country produces 3.5 billion cubic feet a day of natural gas and uses 1.5 billion cubic feet a day to make LNG for export.
Oman is eyeing to boost gas production to meet the rising domestic demand the fuel, as electricity consumption is increasing by 8 percent a year, said Adnan Rajab, chief commercial officer of Oman LNG.
Al-Hinai said that Oman LNG seeks to close a deal with BP by early 2013 to develop gas reserves, estimated at 90 trillion to 100 trillion cubic feet, and reduce gas imports.
Oman imports about 140 million cubic feet a day of gas through the Dolphin pipeline from Qatar, Al Haini added.
Jonathan Evans, BP’s general manager in Oman, said that the London-based energy giant may invest USD20 billion for and developing so-called tight gas in the sultanate.
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